CANSLIM is an investment strategy developed by William J. O'Neil, focusing on identifying growth stocks with strong potential. The acronym stands for seven key criteria: Current earnings, Annual earnings growth, New products or services, Supply and demand, Leader or laggard, Institutional sponsorship, and Market direction. By analyzing these factors, investors aim to find stocks that are likely to outperform the market. The CANSLIM approach emphasizes the importance of both fundamental and technical analysis. Investors look for companies with strong earnings growth and innovative offerings, while also considering market trends and institutional buying. This method helps investors make informed decisions and maximize their investment returns.